The Michaels Organization and its international partners are preparing to break ground on a new multifamily community with ground-floor commercial space in Davis. The development team includes Kyuden Urban Development America and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN), which are joining Michaels in advancing the project.
The project, branded as The Lumberyard, carries a reported development cost of $88 million. It is planned for the former site of Hibbert’s Lumberyard and Hardware Store at the intersection of G and 5th Streets in downtown Davis, replacing a long-standing retail use with higher-density housing and street-level commercial activity. The location places the project within the city’s established core, with direct frontage along a key intersection.
The Lumberyard is designed as a five-story mid-rise building that will contain 239 apartments. According to the development team, 5% of the units will be reserved for households earning 50% or less of the Area Median Income, introducing an income-restricted component within an otherwise market-rate-oriented property. The project will also incorporate ground-floor commercial space, although specific details on the size, uses, or anticipated tenants for this space have not been disclosed.
The effort marks The Michaels Organization’s first partnership with Kyuden Urban Development America and JOIN USA. The formation of this partnership underscores a cross-border capital alignment behind the development, pairing a U.S.-based residential real estate platform with Japanese institutional investors focused on transport and urban infrastructure-related opportunities.
Commenting on the upcoming start of construction, Michael Flannagan, chief investment officer at The Michaels Organization, highlighted the collaborative process that led to the project’s financial closing. He noted that working with Kyuden and JOIN teams to reach that milestone had been a positive experience and emphasized the partners’ anticipation of officially breaking ground and advancing The Lumberyard from planning into execution.
While specific construction timelines, delivery dates, and leasing strategies have not been detailed, the project adds a sizable multifamily and mixed-use component to downtown Davis. With a combination of standard and income-restricted units and integrated commercial space, The Lumberyard is positioned to bring additional housing supply and street-level activity to a central infill location once it is completed.
